We appreciate your visit to Cakery Bakery received 1 000 from a customer on August 5 2016 for a wedding cake to be delivered on September 19 2016 What would. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Final answer:
Upon delivery of the wedding cake, Cakery Bakery would record the $1,000 as earned revenue, changing it from unearned revenue. This would be reflected by a debit to the Unearned Revenue account and a credit to the Sales Revenue account in their financial records.
Explanation:
When Cakery Bakery successfully delivers the wedding cake on September 19, 2016, they would record the transaction in their books by recognizing the revenue. The amount received on August 5 was initially recorded as an unearned revenue (or deferred revenue) because the money was received before the service was provided. On delivery of the cake, this would be changed to earned revenue. The journal entry would be a debit to the Unearned Revenue account to decrease it and a credit to the Sales Revenue account to reflect the revenue earned from the sale of the wedding cake.
Thanks for taking the time to read Cakery Bakery received 1 000 from a customer on August 5 2016 for a wedding cake to be delivered on September 19 2016 What would. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
